Retirement Systems Steven Wilkinson 150 Frank H. Ogawa ...Recommendation: APPROVE June, 2015 Audit...

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Attached here is the Agenda Package for the upcoming committee and board meetings of the Oakland Police and Fire Retirement System. Please contact the Retirement Systems office at 510.238.7295 with any questions regarding the agenda package or upcoming meetings.

Retirement Systems 150 Frank H. Ogawa Plaza Oakland, California 94612

All persons wishing to address the Board must complete a speaker's card, stating their name and the agenda item (including "Open Forum") they wish to address. The Board may take action on items not on the agenda only if findings pursuant to the Sunshine Ordinance and Brown Act are made that the matter is urgent or an emergency. Presentations are limited to three minutes. Oakland Police and Fire Retirement Board meetings are held in wheelchair accessible facilities. Contact Retirement Systems, 150 Frank Ogawa Plaza, Suite 3332 or call (510) 238-7295 for additional information.

RETIREMENT BOARD MEMBERS

Walter L. Johnson, Sr. President

Jaime T. Godfrey Vice President

James F. Cooper Member

Steven Wilkinson Member

Ronald Oznowicz Member

John C. Speakman Member

Osborn Solitei Member

AGENDA

- - - ORDER OF BUSINESS - - -

1. Subject: June 24, 2015 PFRS Audit Committee Meeting Minutes From: Staff of the PFRS Board

Recommendation: APPROVE June, 2015 Audit Committee meeting minutes.

2. Subject: Overview and Scope of Services report of FY 2015 Financial Audit From: Williams – Adley & Co, PFRS financial auditor

Recommendation: RECOMMEND BOARD APPROVAL of a report from PFRS financial auditor regarding Overview and Scope of Services of the financial audit of PFRS fund for Fiscal Year ending June 30, 2015.

3. Subject: Administrative Expenses Report From: Staff of the PFRS Board

Recommendation: ACCEPT an informational report regarding PFRS Administrative Expenses from July 1, 2014 through May 31, 2015.

4. Open Forum

5. Future Scheduling


All persons wishing to address the Board must complete a speaker's card, stating their name and the agenda item (including "Open Forum") they wish to address. The Board may take action on items not on the agenda only if findings pursuant to the Sunshine Ordinance and Brown Act are made that the matter is urgent or an emergency. Oakland Police and Fire Retirement Board meetings are held in wheelchair accessible facilities. Contact Retirement Systems, 150 Frank Ogawa Plaza, Suite 3332 or call (510) 238-7295 for additional information.

AUDIT COMMITTEE MEMBERS

John C. Speakman Chairman



*In the event a quorum of the Board participates in the Committee meeting, the meeting is noticed as a Special Meeting of the Board; however, no final Board action can be taken. In the event that the Audit Committee does not reach quorum, this meeting is noticed as an informational meeting between staff and the Chair of the Audit Committee.

Wednesday, July 29, 2015 – 10:00 am One Frank H. Ogawa Plaza, Hearing Room 3

Oakland, California 94612

SPECIAL MEETING of the AUDIT / OPERATIONS COMMITTEE of the OAKLAND POLICE AND FIRE RETIREMENT SYSTEM (“PFRS”)

AGENDA

PFRS Audit/Operations Committee Meeting Minutes June 24, 2015

Page 1 of 1

D R A F T

D R A F T

A SPECIAL AUDIT/OPERATIONS COMMITTEE MEETING of the Oakland Police and Fire Retirement System (“PFRS”) was held Wednesday, June 24, 2015 in Hearing Room 1, One Frank Ogawa Plaza, Oakland, California.

Committee Members Present: • John C. Speakman, Chairman • James F. Cooper, Member • Osborn Solitei, Member

Additional Attendees: • Pelayo Llamas, Deputy City Attorney / PFRS Legal Counsel • Teir Jenkins & David Low, Staff Members

The meeting was called to order at 10:02 am. Member Solitei was not present at the start of the meeting.

1. Approval of Committee meeting minutes – Member Cooper made a motion to approve the May 27, 2015 Audit Committee meeting minutes, second by Chairman Speakman. Motion passed.

[SOLITEI – ABSENT / COOPER – Y / SPEAKMAN – Y] ( AYES: 2 / NOES: 0 / ABSTAIN: 0 )

2. Administrative Expenses Report through April 30, 2015 – Investment Officer Teir Jenkins presented the PFRS administrative expenses report for the fiscal year through April 30, 2015. (member Solitei arrived at 10:04 am.) Member Cooper made a motion to accept the Administrative Expenses Report from July 1, 2014 through April 30, 2015, second by member Solitei. Motion passed.

[SOLITEI – Y / COOPER – Y / SPEAKMAN – Y] ( AYES: 3 / NOES: 0 / ABSTAIN: 0 )

3. Open Forum – No Report.

4. Future Scheduling – The next scheduled Audit Committee meeting was tentatively scheduled for Wednesday, July 29, 2015.

The meeting adjourned at 10:07 am.

JOHN C. SPEAKMAN, COMMITTEE CHAIRMAN DATE

Table 1

OAKLAND POLICE AND FIRE RETIREMENT SYSTEMAdministrative Budget Spent to Date

Fiscal Year as of May 31, 2015

Approved

Budget May 2015 YTD 5/31/2015 Remaining Percent Remaining

Internal Administrative costsPFRS Staff Salaries 602,847$ 49,444$ 510,776$ 92,071$ 15.3%

Board Travel Expenditures 52,500 - 13,991 38,509 73.4%

Staff Training 7,500 - 5,627 1,873 25.0%

Annual Report & Duplicating Services 4,000 - 2,802 1,198 29.9%

Board Hospitality 2,200 149 1,731 469 21.3%

Payroll Processing Fees 25,000 - 25,000 - 0.0%

Miscellaneous Expenditures 26,500 2,129 16,592 9,909 37.4%

Internal costs Subtotal : 720,547$ 51,721$ 576,519$ 144,028$ 20.0%

Actuary and Accounting ServicesAudit (a) 44,118$ 9,120$ 37,515$ 6,603$ 15.0%

Actuary (b) 45,000 - 42,130 2,870 6.4%

Actuary and Accounting Subtotal: 89,118$ 9,120$ 79,645$ 9,473$ 10.6%

Legal ServicesCity Attorney Salaries 100,971$ 9,823$ 101,779$ (808)$ -0.8%

Contract Services (c) 40,000 - 26,815 13,185 33.0%

Legal Contingency (d) 45,000 - 25,256 19,744 43.9%

Legal Services Subtotal: 185,971$ 9,823$ 153,850$ 32,121$ 17.3%

Investment Services Money Manager Fees 2,305,752$ 215,940$ 1,219,025$ 1,086,727$ 47.1%

Custodial Fee 180,000 - 87,375 92,625 51.5%

Investment Consultant (PCA) 100,000 - 22,500 77,500 77.5%

Investment Subtotal: 2,585,752$ 215,940$ 1,328,900$ 1,256,852$ 48.6%

Total Operating Budget 3,581,388$ 286,604$ 2,138,914$ 1,442,474$ 40.28%

(a) Reallocated Budget to increase line item by $14,118, per motion passed at the 12/17/2014 Board Meeting.

(b) Reallocated Budget to increase line item by $10,000 to conform with Contract agreement, per Board Resolution 6765.

(c) Includes payment of $25,615.00 for prior year (Fiscal Year 2013-2014) Actuarial Services.

(d) Includes funds allocated for Outside Counsel

Table 2

OAKLAND POLICE AND FIRE RETIREMENT SYSTEM

Cash in Treasury (Fund 7100)

As of May 31, 2015

FY 2014-2015

Cash as of 4/30/2015 2,973,546$

Additions

City Contributions -$

Incoming Wires 5,000,000

Death Refunds -

Misc. Receipts: Adjustments / Collections -

Total additions: 5,000,000$

Deductions:

Pension payment (April pension payable May 1, 2015) 4,795,023

Current month expenses (see Table 1) 286,604

Total deductions 5,081,627$

Ending Cash Balance as of 5/31/2015 2,891,919$

Table 3

CITY OF OAKLAND POLICE AND FIRE RETIREMENT SYSTEM

Census

As of May 31, 2015

COMPOSITION POLICE FIRE TOTAL

Retired Member:

Retiree 407 267 674

Beneficiary 151 141 292

Total Retired Members: 558 408 966

Total Membership: 558 408 966

COMPOSITION POLICE FIRE TOTAL

Retired Member:

Service Retirement 369 222 591

Disability Retirement 177 170 347

Death Allowance 12 16 28

Total Retired Members: 558 408 966

Total Membership as of May 31, 2015: 558 408 966

Total Membership as of June 30 2014: 581 425 1,006

Annual Difference: -23 -17 -40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

Police 740 726 705 690 672 653 630 617 598 581 558

Fire 612 586 568 549 523 500 477 465 445 425 408

Total 1352 1312 1273 1239 1195 1153 1107 1082 1043 1006 966

300

350

400

450

500

550

600

650

700

750

800

Oakland Police and Fire Retirement System

Pension Plan Membership

Fiscal Year Ended June 30, FY2005 - FY2015

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Internal Administrativecosts

Actuary and AccountingServices

Legal Services Investment Services

OAKLAND POLICE AND FIRE RETIREMENT SYSTEMApproved Budget

FY 2014-2015

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

Staff (salaries & training) Board (travel & hospitality) Misc (annual rpt, payroll proc &misc)

OAKLAND POLICE AND FIRE RETIREMENT SYSTEMBudget vs Actual as of May 31, 2015

Internal Administrative Costs

Budget

Actual

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Audit Actuary

OAKLAND POLICE AND FIRE RETIREMENT SYSTEMBudget vs. Actual as May 31, 2015Actuary and Accounting Services

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

City Attorney Salaries Legal Contingency (Outside Counsel)

OAKLAND POLICE AND FIRE RETIREMENT SYSTEMBudget vs. Actual as of May 31, 2015

Legal Services

Budget

Actual

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Money Manager Fees Custodial Fee: Northern Trust Investment Consultant (PCA)

OAKLAND POLICE AND FIRE RETIREMENT SYSTEMBudget vs. Actual as of May 31, 2015

Investment Services

Budget

Actual

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1. Subject: June 24, 2015 PFRS Investment Committee Meeting Minutes From: Staff of the PFRS Board

Recommendation: APPROVE June 24, 2015 Investment Committee meeting minutes.

2. Subject: Investment Manager Performance Report – Fisher Investments From: Fisher Investments

Recommendation: ACCEPT an informational report regarding fund performance for PFRS “MSCI ACWI ex US assets” invested with Fisher Investments, an international equity Investment Manager.

3. Subject: Investment Manager Overview – Fisher Investments From: Pension Consulting Alliance

Recommendation: ACCEPT an informational review of Organization and Performance ofFisher Investments, an international equity Investment Manager.

4. Subject: Preliminary Quarterly investment fund performance report for the quarter ending June 30, 2015

From: Pension Consulting Alliance

Recommendation: ACCEPT an informational report regarding the preliminary quarterly investment fund performance report for the quarter ending June 30, 2015.

5. Subject: Investment Market Overview From: Pension Consulting Alliance (PCA)

Recommendation: ACCEPT an Informational Report regarding overview of the global investment market through July 2015.



INVESTMENT COMMITTEE MEMBERS

Jaime T. Godfrey Chairman

Steve Wilkinson Member


*In the event a quorum of the Board participates in the Committee meeting, the meeting is noticed as a Special Meeting of the Board; however, no final Board action can be taken. In the event that the Investment Committee does not reach quorum, this meeting is noticed as an informational meeting between staff and the Chair of the Investment Committee.



SPECIAL MEETING of the INVESTMENT AND FINANCIAL MATTERS COMMITTEE of the OAKLAND POLICE AND FIRE RETIREMENT SYSTEM (“PFRS”)

AGENDA

OAKLAND POLICE AND FIRE RETIREMENT SYSTEM SPECIAL INVESTMENT COMMITTEE MEETING JULY 29, 2015

ORDER OF BUSINESS, continued

Page 2 of 2

6. Subject: Reallocation of PFRS assets from the Private Equity Asset Class to Covered Calls Asset Class


Recommendation: RECOMMEND BOARD APPROVAL of PCA recommendation to reallocate 5% PFRS Investments from the Private Equity Asset class to the Covered Calls Asset Class.

7. Open Forum

8. Future Scheduling

PFRS Investment & Financial Matters Committee Minutes June 24, 2015

Page 1 of 2

D R A F T

D R A F T

AN INVESTMENT AND FINANCIAL MATTERS COMMITTEE MEETING of the Oakland Police and Fire Retirement System (“PFRS”) was held June 24, 2015 in Hearing Room 1, One Frank Ogawa Plaza, Oakland, California

Committee Members Present: • Jaime T. Godfrey, Chairman • Steve Wilkinson, Member • Ronald Oznowicz, Member

Additional Attendees: • Pelayo Llamas, Deputy City Attorney / PFRS Legal Counsel • Katano Kasaine, Plan Administrator • David Low & Teir Jenkins, Staff Members • David Sancewich & Sean Copus, Pension Consulting Alliance

The meeting was called to order at 10:34 am. Member Wilkinson was not present at the start of the meeting.

1. Approval of Committee meeting minutes – Member Oznowicz asked if there were meeting minutes for the May 27, 2015 Investment Committee to be approved. Staff explained that there was no quorum of Committee members at that meeting so no meeting minutes are made to be approved. Member Oznowicz made a motion to approve the April 29, 2015 investment committee meeting minutes, second by Chairman Godfrey. Motion passed.

[GODFREY – Y / WILKINSON – ABSENT / OZNOWICZ – Y] ( AYES: 2 / NOES: 0 / ABSTAIN: 0 )

2. Investment Manager Performance Review – State Street Global Advisors – Rosalind Jacobsen from State Street Global Advisors presented a review of the PFRS “MSCI EAFE assets” invested by PFRS with SSgA’s International Equity account. She explained the tax reclaim process SSgA utilizes for value added service to the PFRS fund.

Member Wilkinson arrived at 10:42 am.

Member Oznowicz made a motion to accept the investment manager performance review by State Street Global Advisors, second by member Wilkinson. Motion passed.

[GODFREY – Y / WILKINSON – Y / OZNOWICZ – Y] ( AYES: 3 / NOES: 0 / ABSTAIN: 0 )

3. Quarterly Investment Performance Report through 3/31/2015 – Sean Copus gave a brief overview of the investment performance report of the PFRS investment fund for the quarterly period ending March 31, 2015. The report was previous reported at the May 27, 2015 meeting and there was no quorum of the committee present to make a motion to approve the performance report. Member Wilkinson made a motion to recommend board approval of the quarterly investment performance report through 3/31/2015 from PCA, second by member Oznowicz. Motion passed.


4. Investment Manager Performance Overview by PCA of SSgA – David Sancewich from Pension Consulting Alliance presented a performance overview of State Street Global Advisors. Member Oznowicz made a motion accept the investment manager performance overview by PCA, second by member Wilkinson. Motion passed.


5. $15 Million 3rd Quarter 2015 Member Benefits Drawdown – Member Oznowicz made a motion to recommend Board approval $15 Million 3rd Quarter 2015 member benefits drawdown, second by Member Wilkinson. Motion passed.


PFRS Investment & Financial Matters Committee Minutes June 24, 2015

Page 2 of 2

D R A F T

D R A F T

6. Resolution No. 6855 – Transition from PCA Inc. to PCA LLC – Mr. Sancewich reported the work with PFRS staff and PCA to finalize the transition of PCA Inc. into PCA LLC. Member Oznowicz made a motion to recommend Board approval of resolution No. 6855, second by member Wilkinson. Motion passed.


7. Investment Market Overview – Mr. Sancewich reported the global market factors presently affecting the PFRS investment fund. Following this report, Member Oznowicz made a motion accept the Investment Market overview report, second by Member Wilkinson. Motion passed.


8. 2015 Asset Allocation Review – Mr. Sancewich reported PCA’s analysis of the current asset allocation of the PFRS fund. His report included the PFRS portfolio expectation for the next 10 years based on the 2015 capital market assumptions and provided a recommendation that the PFRS board consider moving the 5% asset allocation in private equity into the PFRS covered calls asset class. The Committee agreed to bring this matter back to the committee at a future meeting as an action item for Board Approval. After some committee discussion, Member Oznowicz made a motion to accept the asset allocation report, second by member Wilkinson. Motion passed.


9. Resolution No. 6854 – PFRS Investment Policy Amendment regarding Covered Calls – Mr. Sancewich detailed the PCA recommendation regarding the Covered Calls asset class manager’s report on the allocation of funds in the covered calls asset class. He explained the reasoning to convert the revision of the PFRS Investment Policy regarding the Covered Calls Asset class from 80%/20% to 50%/50% allocation and updating the number of call option from once a month to four times a month. He said the risk and financial costs do not increase and the return potential for the asset class increases. PFRS Legal Counsel reported that a typographical error exists on the resolution document that staff will make a correction. Member Oznowicz made a motion to recommend Board approval of resolution No. 6854 amending the investment policy guidelines for the PFRS covered calls asset manager (Parametric Portfolio Advisors) with the correction to the typographical error, second by member Wilkinson. Motion passed.


10. Review of Lawsuit involving PFRS investment earnings from 2009 with Reams Asset Management – Mr. Sancewich and the PFRS Staff reported the information regarding a lawsuit which involved investment returns associated with assets managed by Reams Asset Management in 2009. Member Oznowicz made a motion to accept the informational report from staff, second by member Wilkinson. Motion passed.


11. Open Forum – David Sancewich reported that the Oakland City Council asked him to recommend the PFRS board review and consider divesting from investments that include fossil fuels.

12. Future Scheduling – The next scheduled investment committee meeting was scheduled for Wednesday, July 29, 2015.

The meeting adjourned at 11:43 am.

JAIME T. GODFREY, COMMITTEE CHAIRMAN DATE

ALL FOREIGN EQUITY

F ISHER INVESTMENTS

INSTITUTIONAL GROU P

TM

ALL FOREIGN EQUITY

JULY 29, 2015

A PRESENTATIONTO

CITY OF OAKLAND POLICE AND FIRE RETIREMENT BOARD

MARGARET CHAN, VICE PRESIDENT / RELATIONSHIP MANAGERCHRISTO BARKER, RESEARCH ANALYST ‐‐ CAPITAL MARKETS

PRESENTEDBY

London, UK (FIE)

San Mateo, CA (FI)Camas, WA (FI)

Woodside, CA (FI)

F I SHER I NVES TMENTSTM

INSTITUTIONAL GROUP

PAGE

1

CONTENTSCITY OF OAKLAND POLICE & FIRE RETIREMENT BOARD

2

5

7

11

15

17

Firm Update

Process Overview

Performance

Portfolio Positioning

Market Outlook

Appendix


INSTITUTIONAL GROUP

PAGE

2

Firm Update

Process Overview

Performance


Market Outlook

Appendix


INSTITUTIONAL GROUP

PAGE

3

FIRM UPDATE, JUNE 2015

As of 06/30/2015. Fisher Investments is wholly‐owned by Fisher Investments, Inc. (FII). Since inception, FII has been 100% Fisher‐family and employee‐owned, currently having several shareholdersand over 60 equity option holders.The firm defines investment professionals as Investment Policy Committee (IPC) members, Research Analysts, Traders, Portfolio Implementation Specialists andAnalysts, Portfolio Specialists, Research Analytics & Production Analysts and Portfolio Guidelines Specialists. Please see the Firm Disclosure in the Appendix.

Members of the Investment Policy Committee, from left to right:

Jeffery L. Silk, Vice Chairman, Co‐CIO

Kenneth L. Fisher, CEO, Co‐CIOAaron S. Anderson, Senior Vice President of Research

William J. Glaser, Executive Vice President of Portfolio Management

* The total of firm assets (FIIG AUM) in the table may not match the sum of the strategy assets due to the inclusion of some strategy values in broader strategy assets andthe exclusion of some accounts from all data owing to unique benchmarks.

FISHER INVESTMENTS

$4.6 Billion$1.0 Billion$107.6 Million$1.7 Billion

◦Mid Cap Value Strategy ◦US Total Return Strategy

Assets Under ManagementOver $66 Billion*Over $32 Billion*

$8.2 Billion$12.5 Billion

$3.5 Billion

◦Emerging Markets Equity Strategies Global: ◦Global Equity Strategies US: ◦Small Cap Value Strategy ◦Small and Mid Cap Value Strategy

Firm‐wide: ◦Fisher Investments Institutional Group (FIIG) Foreign: ◦Foreign Equity Strategies


INSTITUTIONAL GROUP

PAGE

4

STRUCTURE AND FUNCTIONSRESEARCH GROUP

Investment Policy Committee

PortfolioImplementation

Implementation Team

Implementation of Model Portfolios(Constructed by IPC)

Order Generation

Cash Flows & Portfolio Rebalancing

Analysts

Associates

Team Leader

AppliedResearch

SecuritiesResearchTeam

Global MacroEconomic, Political,Sentiment Analysis

FundamentalSecurity Analysis

Regional /Country Coverage

Global Sector /Industry Coverage

Global Sector /Industry Coverage

Monitor PortfolioHoldings

ThemeDevelopment

Analysts

Team Leader Team Leader

Analysts

CapitalMarketsResearchTeam

TheoreticalResearch

Capital MarketsInnovation Team

Development / Modification ofPortfolio Drivers

Quantitative Investment Analysis

Analysts

Associates

Team Leader

Performance Attribution

Risk Management, Measurement andModeling


INSTITUTIONAL GROUP

PAGE

5

Firm Update

Process Overview

Performance


Market Outlook

Appendix


INSTITUTIONAL GROUP

PAGE

6

Prospect List Definition

Stock Selection

PROSPECT LIST

STOCK

Capital Markets Research TeamInvestment Policy Committee

Securities Research TeamInvestment Policy Committee

Investment Policy Committee

Portfolio Drivers

COUNTRY, SECTOR, THEMATIC WEIGHTS

INVESTMENT PROCESSOVERVIEW


INSTITUTIONAL GROUP

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7

Firm Update

Process Overview

Performance


Market Outlook

Appendix


INSTITUTIONAL GROUP

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8

Performance is preliminary. Preliminary performance is subject to the final reconciliation of accounts and deduction of any outstanding advisory fees, which will have the effect of lowering performance by the amount of the deductions. Performance is inclusive of dividends, royalties, interest and other forms of accrued income and may reflect end of month adjustments, such as unsettled trades, accrued interest, and/or dividends that may have not yet been applied to your account at the custodian. Returns are net of advisory fees, unless otherwise noted, and inclusive of brokerage or other commissions. Sources: Eagle Investment Systems, LLC & FactSet. As of 06/30/2015.

PERFORMANCE

Mandate All Foreign Equity

Benchmark MSCI ACWI ex‐US

Market Value, as of 06/30/2015 $17,808,359

2015 YTD 2014Since Inception03/31/2011(Annualized)

Oakland P&F (Gross) 5.7% ‐2.0% 4.4%

Oakland P&F (Net) 5.3% ‐2.8% 3.6%

MSCI ACWI ex‐US 4.0% ‐3.9% 2.8%

Excess Return (Net) 1.3% 1.1% 0.8%

CITY OF OAKLAND POLICE & FIRE RETIREMENT BOARD


INSTITUTIONAL GROUP

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9From 01/01/2015 – 06/30/2015, excluding cash. Source: Eagle Investment Systems, LLC.

2015 YTD – (01/01/2015 ‐ 06/30/2015) PERFORMANCE ATTRIBUTION

Country Selection: Slight Net Positive

Sector Selection: Net Positive

Japan

Russia

Malaysia

Australia

Canada

Indonesia

United Kingdom

Turkey

China

Denmark

‐1.50% ‐1.00% ‐0.50% 0.00% 0.50% 1.00% 1.50%Performance Contribution Relative to the MSCI ACWI ex US Index

UnderweightOverweight

Telecom Services

Consumer Staples

Financials

Materials

Utilities

Energy

Industrials

Information Technology

Consumer Discretionary

Health Care


UnderweightOverweight


INSTITUTIONAL GROUP

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PERFORMANCE ATTRIBUTION

Stock Selection: Net Positive

From 01/01/2015 – 06/30/2015, excluding cash. Source: Eagle Investment Systems, LLC.

2015 YTD – (01/01/2015 ‐ 06/30/2015)

Industrials

Hong Kong

Netherlands

Canada

Germany

United Kingdom

France

Financials

Switzerland

China



INSTITUTIONAL GROUP

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Firm Update

Process Overview

Performance


Market Outlook

Appendix


INSTITUTIONAL GROUP

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12

COUNTRY ALLOCATION

Percent of portfolio market value that is allocated to a given country, excluding cash. As of 06/30/2015. Eagle Investment Systems, LLC & FactSet.

OAKLAND P&F VS. MSCI ACWI ex‐USFI MSCI

Oakland ACWICountry Relative Weight P&F ex‐US

United Kingdom 22.1% 14.5%Germany 14.0 6.4Switzerland 10.7 6.6China 9.2 5.4France 9.9 6.9Denmark 3.9 1.2Indonesia 1.3 0.5India 2.3 1.7Netherlands 2.5 2.0Turkey 0.7 0.3Brazil 1.9 1.6Belgium 1.0 0.9Mexico 1.0 1.0Italy 1.1 1.6Taiwan 2.2 2.8Finland 0.0 0.6Malaysia 0.0 0.7Russia 0.0 0.8South Korea 2.1 3.1Singapore 0.0 1.0Sweden 1.0 2.1South Africa 0.0 1.7Spain 0.8 2.5Hong Kong 0.5 2.3Australia 2.5 4.9Other* 0.0 3.6Canada 2.9 6.6Japan 6.4 16.3

0.1%0.3%0.4%0.5%0.6%0.8%

2.7%3.0%

3.8%4.1%

7.6%7.6%

‐9.9%‐3.7%‐3.6%

‐2.4%‐1.8%‐1.7%‐1.7%‐1.1%‐1.0%‐1.0%‐0.8%‐0.7%‐0.6%‐0.6%‐0.5%

0.0%

*Other by (Benchmark Weight %, Relative Weight %): Thailand (0.5 ‐0.5), Norway (0.5 ‐0.5), Israel (0.4 ‐0.4), Philippines (0.3 ‐0.3), Chile (0.3 ‐0.3), Ireland (0.3 ‐0.3), Poland (0.3 ‐0.3), Qatar (0.2 ‐0.2), United Arab Emirates (0.2 ‐0.2), New Zealand (0.1 ‐0.1), Greece (0.1 ‐0.1), Austria (0.1 ‐0.1), Peru (0.1 ‐0.1), Colombia (0.1 ‐0.1), Portugal (0.1 ‐0.1)


INSTITUTIONAL GROUP

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13Percent of portfolio market value that is allocated to a given sector and industry, excluding cash. As of 06/30/2015. Eagle Investment Systems, LLC & FactSet.

SECTOR & INDUSTRY ALLOCATIONOAKLAND P&F VS. MSCI ACWI ex‐US

FI MSCIOakland ACWI

Sector P&F ex‐US

Information Technology 17.8% 7.4%Health Care 18.6 9.0Consumer Discretionary 16.0 11.8Industrials 12.4 11.0Financials 24.7 27.8Utilities 0.0 3.4Materials 3.7 7.5Consumer Staples 4.9 9.9Telecom Services 0.0 5.2Energy 1.8 7.0

Relative Weight

1.4%4.2%

9.6%10.4%

‐5.2%‐5.2%‐5.0%‐3.8%‐3.4%‐3.1%

FI MSCIOakland ACWI

Top Five Industry Over/Underweights P&F ex‐US

Pharmaceuticals 16.3% 7.4%Semiconductors & Semiconductor Equipment 6.6 1.6Insurance 9.6 5.6Textiles, Apparel & Luxury Goods 5.1 1.3Internet & Catalog Retail 2.6 0.1Diversified Telecom Services 0.0 2.6Wireless Telecom Services 0.0 2.6Metals & Mining 0.0 3.1Banks 11.9 15.4Oil, Gas & Consumable Fuels 1.8 6.7

Relative Weight

2.5%3.8%4.0%

5.0%8.9%

‐4.9%‐3.5%‐3.1%‐2.6%‐2.6%


INSTITUTIONAL GROUP

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14

PORTFOLIO CHARACTERISTICS

As of 06/30/2015. Sources: Eagle Investment Systems LLC & FactSet.

Characteristic Oakland P&F MSCI ACWI ex‐US

Number of Holdings 68 1,843

Weighted Average ($Billions) 79.3 52.2

Price/Earnings 16.9 14.8

Price/Sales 1.5 1.1

Price/Book Value 2.8 1.8

Dividend Yield (%) 2.4 2.9

OAKLAND P&F VS. MSCI ACWI ex‐US


INSTITUTIONAL GROUP

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Firm Update

Process Overview

Performance


Market Outlook

Appendix


INSTITUTIONAL GROUP

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2015 MARKET OUTLOOK

• A nicely positive year for global equities and a continued bull market

• The global economy should continue expanding, led by the US, UK and select Emerging Markets

• Forward looking indicators suggest further economic expansion – LEIsglobally remain high and continue to rise

• Expect revenue growth, earnings growth and slight profit margin expansion

• Falling resource prices reflect increased supply, not a sign of a weakening global economy

• Weaker regions like the Eurozone should do better than dour expectations

• Equity valuations remain attractive to history and other asset classes

• Investor sentiment still has room for improvement before becoming euphoric


INSTITUTIONAL GROUP

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Firm Update

Process Overview

Performance


Market Outlook

Appendix


INSTITUTIONAL GROUP

PAGE

18

Margaret Chan Vice President, Relationship Manager 10 years at Fisher InvestmentsMargaret serves as a liaison between the Investment Policy Committee and our institutional clients and theirinvestment consultants. In this role, Margaret communicates portfolio strategy, market outlook, performance,stock analysis, and conducts ad hoc research projects. Prior to her current role, Margaret was an InvestmentCounselor in the Fisher Investments Private Client Group. She was also previously a Senior Account Executive,in the Private Client Group.

INVESTMENT PROFESSIONALSBIOGRAPHIES

Christo Barker Research Analyst – Capital Markets 8 years at Fisher InvestmentsChristo generates fundamental and quantitative macroeconomic research for use in the investment process.Prior to joining the Research Department, Christo worked in multiple capacities within Fisher Investmentsincluding client services and as an Institutional Group Portfolio Analyst.


INSTITUTIONAL GROUP

PAGE

19

DISCLOSURESFIRM

Fisher Investments (FI) is an investment adviser registered with the Securities and Exchange Commission. As of June 30, 2015, FI managed over $66 billion, including assets sub‐managed for its wholly‐owned subsidiaries. FI and its subsidiaries maintain four principal business units – Fisher Investments Institutional Group (FIIG), Fisher Investments Private Client Group (FIPCG), Foreign Private Client Group (FPCG), and Fisher Investments 401(k) Solutions Group (401(k) Solutions). These groups serve a global client base of diverse investors including corporations, public and multi‐employer pension funds, foundations and endowments, insurance companies, healthcare organizations, governments and high‐net‐worth individuals. FI’s Investment Policy Committee (IPC) is responsible for investment decisions for all investment strategies.

For purposes of defining “firm,” Fisher Investments was established as a sole proprietorship in 1979, incorporated in 1986, registered with the SEC in 1987, replacing the prior registration of the sole proprietorship, and succeeded its investment adviser registration to a limited liability company in 2005. “Years with FI” is calculated using the date on which Fisher Investments was established as a sole proprietorship through

FI is wholly‐owned by Fisher Investments, Inc. (FII). Since inception, FII has been 100% Fisher‐family and employee‐owned, currently Fisher Investments, Inc. (FII) beneficially owns 100% of Fisher Investments (FI), as listed in Schedule A to FI’s Form ADV Part 1. Kenneth L. Fisher beneficially owns more than 75% of FII, as noted in Schedule B to FI’s Form ADV Part 1.

F ISHER INVESTMENTS

INSTITUTIONAL GROU P

TM

13100 SKYLINE B OULEVARD | W OODSIDE, C ALIFORNIA 94062

LOCAL: 650.851.3334 | TOLL FREE: 800.851.8845 | FAX: 866.596.9715

M E M O R A N D U M Date: July 29, 2015 To: Oakland Police and Fire Retirement System (OPFRS) From: Pension Consulting Alliance, Inc. (PCA) CC: David Sancewich – PCA Sean Copus – PCA Teir Jenkins – OPFRS Katano Kasaine - OPFRS RE: Fisher Investments – Update Discussion

In reviewing Fisher, PCA considered investment performance and recent organizational / personnel issues.

Investment Performance (as of 3/31/2015)

Manager Mkt Value ($000) Asset Class Quarter 1 YR 3 YR 5 YR Since

Inception* Inception

Date** Fisher Investments 18,038 International 6.7 3.9 7.6 --- 5.0 4/2011

MSCI ACWI ex-US --- --- 3.6 -0.6 6.9 --- 3.8 --- ** Inception date reflects the month when portfolio received initial funding.

Since being retained as OPFRS’s active international equity manager in April 2011, Fisher has outperformed its benchmark, the MSCI ACWI ex-US index, over all time periods measured.

Organizational Issues

Since being installed as one of OPFRS’s active international equity managers in 2011 there has been a small amount of turnover as one portfolio manager left the investment team in 2013, while two portfolio managers were added in 2011. The analyst ranks have seen a higher amount of turnover with 21 analysts being added to the team and 6 leaving the team since the end of 2011. Fisher’s company culture involves constant rotation of employees, which helps explain the relatively high number of analysts added since 2011. There has also been no change to the Investment Policy Committee, which is responsible for directing all of the firm’s strategic investment decisions, since Fisher was retained by OPFRS. PCA does not see any material concerns with the Fisher organization at this time.

Investment Philosophy, per manager

Fisher Investment’s International Equity strategy utilizes a top-down investment process based on applying capital markets technology to the analysis of a wide range of economic, political, and

2

sentiment drivers to formulate forecasts and develop portfolio themes. The firm attempts to exploit the structure of foreign markets and capitalize on country and sector/industry cycles as they come into and out of favor. The firm also seeks to add value at the security level, but believes individual security research is most effective when used to complement higher-level portfolio themes and characteristics rather than as the sole focus of the investment process. Fisher expects approximately one-third of the strategy’s performance will be attributable to each of the country, sector, and security decisions. Fisher also adheres to a strict application of portfolio management discipline such that it remains continuously cognizant of the composition of the relevant benchmark and the relative risks engineered into portfolios against the benchmark.

Investment Process, per manager

Fisher’s International strategy focuses on three basic decisions that are ultimately made by the Investment policy Committee based on research conducted by the Capital Markets Research and Securities Research teams. The process begins by using certain economic indicators, known as “drivers” in order to determine country and sector allocations based on risk and return expectations. These indicators are continuously monitored in order to recognize shifts and determine if the market has discounted them. Next, a prospect list of individual securities is created using a quantitative screening process to minimize risk and screen out securities with insufficient liquidity or solvency. Finally, The Investment Policy Committee then further narrows the prospect list based on fundamental research performed by the Securities Research Team.

The fundamental research process includes an outlier analysis where buy candidates are examined to ensure their revenue streams and lines of business are closely linked to the strategy’s top-down themes. Companies are then subject to a "strategic attribute" review where a company’s comparative advantages are identified. Examples of "strategic attributes" include niche market, consolidator, regional advantage, high market share, etc. Next, an attribute execution analysis is conducted to understand how the company’s management is exploiting their advantage. Stocks are subjected to a relative valuation analysis to understand the stock's current price relative to the market, its peers, and its history. Finally, the firm examines the risks, if any, to the company’s operations. Fisher looks for “red flags" like customer concentration, environmental concerns, poor labor relations, etc. Based on the above analyses the Investment Policy Committee selects stocks for the portfolio.

Stocks are sold based on three disciplines: strategic shifts in country or sector allocations that require the sale of securities, changes in the stocks fundamentals that cause them to shift from the strategic attributes that originally warranted their purchase, and partial sales related strictly to portfolio management risk control.

3

DISCLOSURES: This document is provided for informational purposes only. It does not constitute an offer of securities of any of the issuers that may be described herein. Information contained herein may have been provided by third parties, including investment firms providing information on returns and assets under management, and may not have been independently verified. The past performance information contained in this report is not necessarily indicative of future results and there is no assurance that the investment in question will achieve comparable results or that the Firm will be able to implement its investment strategy or achieve its investment objectives. The actual realized value of currently unrealized investments (if any) will depend on a variety of factors, including future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which any current unrealized valuations are based. Neither PCA nor PCA’s officers, employees or agents, make any representation or warranty, express or implied, in relation to the accuracy or completeness of the information contained in this document or any oral information provided in connection herewith, or any data subsequently generated herefrom, and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. PCA and PCA’s officers, employees and agents expressly disclaim any and all liability that may be based on this document and any errors therein or omissions therefrom. Neither PCA nor any of PCA’s officers, employees or agents, make any representation of warranty, express or implied, that any transaction has been or may be effected on the terms or in the manner stated in this document, or as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views or terms contained herein are preliminary only, and are based on financial, economic, market and other conditions prevailing as of the date of this document and are therefore subject to change. The information contained in this report may include forward-looking statements. Forward-looking statements include a number of risks, uncertainties and other factors beyond the control of the Firm, which may result in material differences in actual results, performance or other expectations. The opinions, estimates and analyses reflect PCA’s current judgment, which may change in the future. Any tables, graphs or charts relating to past performance included in this report are intended only to illustrate investment performance for the historical periods shown. Such tables, graphs and charts are not intended to predict future performance and should not be used as the basis for an investment decision. All trademarks or product names mentioned herein are the property of their respective owners. Indices are unmanaged and one cannot invest directly in an index. The index data provided is on an “as is” basis. In no event shall the index providers or its affiliates have any liability of any kind in connection with the index data or the portfolio described herein. Copying or redistributing the index data is strictly prohibited. The Russell indices are either registered trademarks or tradenames of Frank Russell Company in the U.S. and/or other countries. The MSCI indices are trademarks and service marks of MSCI or its subsidiaries. Standard and Poor’s (S&P) is a division of The McGraw-Hill Companies, Inc. S&P indices, including the S&P 500, are a registered trademark of The McGraw-Hill Companies, Inc. CBOE, not S&P, calculates and disseminates the BXM Index. The CBOE has a business relationship with Standard & Poor's on the BXM. CBOE and Chicago Board Options Exchange are registered trademarks of the CBOE, and SPX, and CBOE S&P 500 BuyWrite Index BXM are servicemarks of the CBOE. The methodology of the CBOE S&P 500 BuyWrite Index is owned by CBOE and may be covered by one or more patents or pending patent applications. The Barclays Capital indices (formerly known as the Lehman indices) are trademarks of Barclays Capital, Inc. The Citigroup indices are trademarks of Citicorp or its affiliates. The Merrill Lynch indices are trademarks of Merrill Lynch & Co. or its affiliates. FTSE is a trademark of the London Stock Exchange Group companies and is used by FTSE under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. No further distribution of FTSE data is permitted with FTSE’s express written consent.

OPFRS Preliminary Performance Report – 2Q 2015

City of Oakland Police and Fire Retirement System Preliminary 2Q 2015 Performance

As of 6/30/2015, gross of fees Segment

Manager Since InceptionBenchmark Style 2Q 2015 1-year 3-year 5-year Inception8 Date9

Total Plan (Gross of Fees) 0.0 4.0 9.7 10.8 --- ---Total Plan (Net of Fees)10 -0.1 3.6 9.3 10.4 --- ---Policy Benchmark1 0.3 4.0 8.5 10.0 --- ---Asset Allocation Benchmark (actual broad asset class weightings)2 -0.1 3.2 11.7 11.8 --- ---Asset Allocation Benchmark (actual manager weightings)3 0.1 3.9 11.7 12.1 --- ---

Public Equity 0.4 5.8 16.6 15.9 --- ---Public Equity Benchmark 4 0.3 4.8 16.0 15.4 --- ---

Domestic Equity 0.2 7.4 17.9 17.9 --- ---

Russell 3000 (blend) 5 0.1 7.3 17.7 17.5 --- ---

Large Cap 0.2 7.4 17.4 17.6 --- ---

Northern Trust Large Cap Core 0.2 7.5 17.7 17.5 14.8 5/2010Russell 1000 Large Cap Core 0.1 7.4 17.7 17.6 13.8 ---

SSgA Russell 1000 Value Large Cap Value 0.1 --- --- --- 2.1 10/2014Russell 1000 Value Large Cap Value 0.1 --- --- --- 2.0 ---

SSgA Russell 1000 Growth Large Cap Growth 0.1 --- --- --- 6.1 10/2014Russell 1000 Growth Large Cap Growth 0.1 --- --- --- 6.1 ---

Midcap --- ---

Earnest Partners Mid Cap Core 0.2 6.9 18.1 17.3 8.5 3/2006Russell Mid Cap Mid Cap Core -1.5 6.6 19.3 18.2 8.6 ---

Small Cap 0.7 8.5 21.5 21.6 --- ---NWQ Small Cap Value -1.2 4.9 20.8 20.8 7.5 1/2006Russell 2000 Value Small Cap Value -1.2 0.8 15.5 14.8 6.0 ---

Lord Abbett Small Cap Growth 3.0 12.7 22.8 22.5 22.5 6/2010Russell 2000 Growth Small Cap Growth 2.0 12.3 20.1 19.3 19.3 ---

International Equity 1.0 -0.8 11.5 9.1 --- ---MSCI ACWI Ex US (blend) 6 0.7 -4.8 9.9 8.2 --- ---

Hansberger International 2.9 1.4 11.5 8.5 4.7 1/2006MSCI ACWI Ex US ACWI ex US 0.7 -4.8 9.9 8.2 4.6 ---Fisher International -0.6 0.0 11.2 --- 4.3 3/2011MSCI ACWI Ex US ACWI ex US 0.7 -4.8 9.9 8.2 3.3 ---

State Street Global International 0.8 -4.0 12.3 9.8 8.0 7/2002MSCI EAFE Developed Markets 0.8 -3.8 12.5 10.0 8.1 ---

Fixed Income -1.1 2.3 2.3 3.9 --- ---BC Universal (blend) 7 -1.4 1.6 2.3 3.8 --- ---

Reams Core Plus -1.0 2.2 2.6 4.5 6.1 1/1998BC Universal (blend) 7 Core Plus -1.4 1.6 2.3 3.8 5.3 ---

T Rowe Price Core -1.6 1.9 2.4 --- 3.5 5/2011BC Aggregate Core -1.7 1.9 1.8 --- 3.3 ---

DDJ High Yield/Bank Loans 1.0 --- --- --- 2.9 1/2015BofAML US HY Master II High Yield/Bank Loans 0.0 --- --- --- 1.8 ---

Covered Calls 1.8 4.8 --- --- --- ---Parametric 1.8 4.8 --- --- 6.7 3/2014CBOE BXM 1.9 3.6 --- --- 5.5 ---

Real Return -2.2 -4.2 --- --- --- ---

Wellington -2.2 -4.2 --- --- -0.2 2/2014CPI + 3% 1.8 3.1 --- --- 4.5 ---

Source of Blended Benchmarks: LDZ Group1. Policy Benchmark consists of 48% Russell 3000, 12% MSCI ACWI ex U.S., 20% BC Universal, 10% CBOE BXM, 10% CPI+3%2. Asset Allocation Benchmark by Asset Class consists of 47% Russell 3000, 15% MSCI ACWI ex U.S., 18% BC Universal, 10% CBOE BXM, and 10% CPI+3%.3. Asset Allocation Benchmark by Manager consists of w eighted average return of individual manager benchmarks, based on managers' actual allocations.4. Public Equity Benchmark consists of 76% Russell 3000 and 24% MSCI ACWI ex U.S. 5. Domestic Equity Benchmark consists of S&P 500 thru 3/31/98, 10% R1000, 20% R1000V, 5% RMC from 4/1/98 - 12/31/04, and Russell 3000 from 1/1/05 to the present.6. International Equity Benchmark consists of MSCI EAFE thru 12/31/04, and MSCI ACWI x US thereafter.7. Fixed Income Benchmark consists of BC Aggregate prior to 4/1/06, and BC Universal thereafter.8. Performance is calculated based on the f irst full month of performance since funding.

9. Inception date reflects the month w hen portfolio received initial funding.

10. Annual investement manager fees estimated at 42 basis points

OPFRS Preliminary Performance Report – 2Q 2015

City of Oakland Police and Fire Retirement System Preliminary Market Value Summary

As of 6/30/2015

Manager Style Market Value $(000) Target Actual1 Difference

Total Plan $423,875 100.0% 100.0% 0.0%%Public Equity $258,470 60.0% 61.0% 1.0%0 0%

Domestic Equity $208,918 48.0% 49.3% 1.3%Large Cap EquityNorthern Trust Large Cap Core 92,697 19.2% 21.9% 2.7%SSgA Russell 1000 Value Large Cap Value 29,367 7.4% 6.9% -0.5%SSgA Russell 1000 Growth Large Cap Growth 30,818 7.4% 7.3% -0.1%

Mid Cap EquityEarnest Partners Mid Cap Core 32,824 8.0% 7.7% -0.3%Small Cap EquityNWQ Small Cap Value 12,293 3.0% 2.9% -0.1%Lord Abbett Small Cap Growth 10,919 3.0% 2.6% -0.4%International Equity $49,552 12.0% 11.7% -0.3%SSgA International 14,124 3.6% 3.3% -0.3%Hansberger International 17,491 4.2% 4.1% -0.1%Fisher International 17,937 4.2% 4.2% 0.0%

Fixed Income $77,201 20.0% 18.2% -1.8%Reams Core Plus 25,000 8.0% 5.9% -2.1%T. Rowe Price Core 41,936 10.0% 9.9% -0.1%DDJ High Yield/Bank Loans 10,265 2.0% 2.4% 0.4%Transition (Reams)3 Transition Portfolio 0 0.0% 0.0% ---0 0%

Covered Calls $44,375 10.0% 10.5% 0.5%Parametric (Eaton Vance) Active/Replication 44,375 --- 10.5% ---

Real Return $40,824 10.0% 9.6% -0.4%

Wellington 40,824 --- 9.6% ---

Total Cash2 $3,005 0.0% 0.7% 0.7%y y

1. In aggregate, asset class allocations equal to 100% of total investment portfolio.2. Includes cash balance w ith City Treasury and Torrey Pines Bank as of 3/31/2015.3. Includes a residual $84 in the Reams transition account.

PCA INVESTMENT MARKET RISK METRICS

Monthly Report

July 2015

Takeaways

• U.S. growth oriented assets; equity, private equity, and private real estate (on a cap rate basis), are all registering top decile valuation levels relative to their histories.

• Due to recent events in China and Greece, equity volatility (VIX) spiked in late-June / early-July, but still remains below the long-term average level of roughly 20.

• U S credit spreads widened during June and early-July U.S. credit spreads widened during June and early July.

• Even prior to early-July price declines, international equity valuations were below their historical average valuation levels.

• Interest rate risk, as measured by the duration of the U.S. 10-year Interest rate risk, as measured by the duration of the U.S. 10 year Treasury Note, remains near historic highs.

• Commodity prices and breakeven inflation levels indicate that inflation is under control.

• The PCA Market Sentiment Indicator remained neutral. (page 4)

PENSION CONSULTING ALLIANCE, LLC.• Investment Market Risk Metrics 2

1See Appendix for the rationale for selection and calculation methodology used for the risk metrics.

Monthly Report - July 2015

Risk Overview

US Equity (page 5)

Dev ex-US Equity

(page 5)

EM Equity Relative to DM Equity

(page 6)

Private Equity

(page 6)

Private Real

Estate Cap Rate (page 7)

Private Real

Estate Spread

(page 7)

US IG Corp Debt

Spread (page 8)

US High Yield Debt

Spread (page 8)

Valuation Metrics versus Historical Range A Measure of Risk

Top Decile

Bottom Decile

Average

Unfavorable Pricing

Favorable Pricing

Neutral

Equity Volatility (page 9)

Yield Curve Slope (page 9)

Breakeven Inflation (page 10)

Interest Rate Risk (page 11)

Other Important Metrics within their Historical Ranges Pay Attention to Extreme Readings

Top Decile

Bottom Decile

Average

Attention!

Attention!

Neutral

PENSION CONSULTING ALLIANCE, LLC. • Investment Market Risk Metrics 3


Market Sentiment

Information Behind Current Sentiment Reading

Bond Spread Momentum Trailing-Twelve Months Negative

Equity Return Momentum Trailing-Twelve Months Positive

Agreement Between Bond Spread and Equity Spread Momentum Measures? Disagree

Growth Risk Visibility (Current Overall Sentiment) Neutral

PCA Market Sentiment Indicator (1995-Present)

Avoid Growth Risk Growth Risk Neutral Embrace Growth Risk PCA Sentiment Indicator

Positive

Negative

Neutral

Positive

Neutral

Negative

PCA Market Sentiment Indicator - Most Recent 3-Year Period


Positive

Negative

Neutral

Positive

Neutral

Negative



Developed Public Equity Markets

(Please note the different time scales)

0

5

10

15

20

25

30

35

40

45

P/E

Rat

io

Developed ex-US Equity Market P/E Ratio1

versus Long-Term Historical Average2

Long-Term Average

Historical 2

P/E = 16.9x

Intl Developed Markets Current P/E as of 6/2015

= 15.0x

1 P/E ratio is a Shiller P/E-10 based on 10 year real MSCI EAFE earnings over EAFE index level.

2 To calculate the LT historical average, from 1881 to 1982 U.S. data is used as developed market proxy. From 1982 to present, actual developed ex-US market data (MSCI EAFE) is used.

Average 1982-6/2015 EAFE

Only P/E = 23.9x

0

5

10

15

20

25

30

35

40

45

50

P/E

Rat

io

U.S. Equity Market P/E Ratio1

versus Long-Term Historical Average

1966

2000

1981 1921

1929

US Markets Long-term Average

(since 1880) P/E = 16.6x

US Markets Current P/E

as of 6/2015 = 26.6x

1 P/E ratio is a Shiller P/E-10 based on 10 year real S&P 500 earnings over S&P 500 index level.

2009

1901



Emerging Market Public Equity Markets

US Private Equity Quarterly Data, Updated to Mar. 31st

0%

25%

50%

75%

100%

125%

150%

175%

200%

225%

250%

275%

Emerging Markets PE / Developed Markets PE (100% = Parity between PE Ratios)

EM/DM PE Average EM/DM PE Parity Source: Bloomberg, MSCI World, MSCI EMF

Asian Crisis

Russian Crisis, LTCM implosion, currency devaluations

Technology and Telecom Crash

Commodity price runup

World Financial Crisis

EM/DM relative PE ratio is in-line with the historical average

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Price to EBITDA Multiples Paid in LBOs

(updated to May 31st)

Source: S&P LCD study, data presented is on 1-month lag

0

50

100

150

200

250

Bill

ion

s ($

)

Disclosed U.S. Quarterly Deal Volume*

Source: Thomson Reuters Buyouts * quarterly total deal size (both equity and debt)

Deal volume remains in an upward trend.

Multiples have risen above the pre-crisis highs.

Mexican Peso Crisis



Private Real Estate Markets Quarterly Data, Updated to Mar. 31st

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

10.0%

Cap

Rat

e

Core Real Estate Current Value Cap Rates1

Core Cap Rate LT Average Cap Rate 10 Year Treasury Rate

Sources: NCRIEF, www.ustreas.gov 1A cap rate is the current annual income of the property divided by an estimate of the current value of the property . It is the current yield of the property. Low cap rates indicate high valuations.

Core real estate cap rates remain low by historical standards (expensive).

0.00%

5.00%

10.00%

15.00%

20.00%

Transactions as a % of Market Value Trailing-Four Quarters (a measure of property turnover activity)

Source: NCREIF, PCA calculation

Activity has plateaued over the last 2-year period.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Cap

Rat

e Sp

read

Core Cap Rate Spread over 10-Year Treasury Interest Rate

Core Cap Rate Spread to Treasuries

LT Average Spread

Spread to the 10-year Treasury widened due to recent compression of U.S. interest rates.



Credit Markets US Fixed Income

0

100

200

300

400

500

600

700

Spre

ad O

ver

Tre

asu

rie

s (b

asis

po

ints

)

Investment Grade Corporate Bond Spreads

Investment Grade Bond Spreads

Average spread since 1994 (IG Bonds)

Source: LehmanLive: Barclays Capital US Corporate Investment Grade Index Intermediate Component.

Investment grade spreads widened slightly during June, but remain below the long-term average level.

0

200

400

600

800

1000

1200

1400

1600

1800

Spre

ad O

ver

Tre

asu

rie

s (b

asis

po

ints

)

High Yield Corporate Bond Spreads

High Yield Bond Spreads

Average spread since 1994 (HY Bonds)

Source: LehmanLive: Barclays Capital U.S. Corporate High Yield Index.

Likewise, high yield spreads widened during June, but remain below the long-term average level.



Other Market Metrics

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

VIX - a measure of equity market fear / uncertainty

Source: http://www.cboe.com/micro/vix/historical.aspx

Equity market volatility (VIX) remained compressed throughout the majority of June, but spiked near the end of the month to finish near the long-term average level at roughly 18.2.

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

Yield Curve Slope

Source: www.ustreas.gov (10 yr treasury yield minus 1 year treasury yield) Recession Dating: NBER http://www.nber.org/cycles.html

Yield curve slopes that are negative (inverted) portend a recession.

The average 10-year Treasury interest rate increased during June. The average short-term rate (the one-year Treasury) remained at low levels (≈ 30 bps). The change in slope over the month was up, and the yield curve remains upward sloping.



Measures of Inflation Expectations

(Please note the different time scales)

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

10-Year Breakeven Inflation (10-year nominal Treasury yield minus 10-year TIPS yield)

Source: www.ustreas.gov

Breakeven inflation ended June at 1.87%, increasing from the end of May. The 10-year TIPS real-yield ticked up to 0.48%, and the nominal 10-year Treasury yield increased to 2.35%.

0

20

40

60

80

100

120

140

160

Inflation Adjusted Dow Jones UBS Commodity Price Index (1991 = 100)

Broad commodity prices ticked up during June, but remain near the lowest levels (inflation adjusted) since the dataset began in 1991.

Source: Bloomberg Commodity Index, St. Louis Fed for US CPI all urban consumers.



Measures of U.S. Treasury Interest Rate Risk

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Exp

ect

ed

Re

al Y

ield

of

10

-Ye

ar T

reas

ury

Estimate of 10-Year Treasury Forward-Looking Real Yield

Sources: www.ustreas.gov for 10-year constant maturity rates *Federal Reserve Bank of Philadelphia survey of professional forecasts for inflation estimates

The forward-looking annual real yield on 10-year Treasuries is estimated at approximately 0.22% real, assuming 10-year annualized inflation of 2.14%* per year.

4.00

4.50

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10

-Ye

ar T

reas

ury

Bo

nd

Du

rati

on

10-Year Treasury Duration (Change in Treasury price with a change in interest rates)

Source: www.ustreas.gov for 10-year constant maturity rates, calculation of duration

Lower Risk

Higher Risk Interest rate risk is off the 30 year high, but not by much.

If the 10-year Treasury yield rises by 100 basis points from today's levels, the capital loss from the change in price is expected to be -8.8%.


AppendixAppendix


Appendix

METRIC DESCRIPTION, RATIONALE FOR SELECTION AND CALCULATION METHODOLOGY

US Equity Markets:Metric: P/E ratio = Price / “Normalized” earnings for the S&P 500 Index

To represent the price of US equity markets we have chosen the S&P 500 index This index has theTo represent the price of US equity markets, we have chosen the S&P 500 index. This index has thelongest published history of price, is well known, and also has reliable, long-term, published quarterlyearnings. The price=P of the P/E ratio is the current price of the market index (the average daily price ofthe most recent full month for the S&P 500 index). Equity markets are very volatile. Prices fluctuatesignificantly during normal times and extremely during periods of market stress or euphoria. Therefore,developing a measure of earnings power (E) which is stable is vitally important, if the measure is toprovide insight. While equity prices can and do double, or get cut in half, real earnings power does notchange nearly as much. Therefore, we have selected a well known measure of real, stable earningspower developed by Yale Professor Robert Shiller known as the Shiller E-10. The calculation of E-10 issimply the average real annual earnings over the past 10 years. Over 10 years, the earnings shenanigansand boom and bust levels of earnings tend to even out (and often times get restated) Therefore thisand boom and bust levels of earnings tend to even out (and often times get restated). Therefore, thisearnings statistic gives a reasonably stable, slow-to-change estimate of average real earnings power forthe index. Professor Shiller’s data and calculation of the E-10 are available on his website athttp://www.econ.yale.edu/~shiller/data.htm. We have used his data as the base for our calculations.Details of the theoretical justification behind the measure can be found in his book Irrational Exuberance[Princeton University Press 2000, Broadway Books 2001, 2nd ed., 2005].

Developed Equity Markets Excluding the US:Metric: P/E ratio = Price / “Normalized” earnings for the MSCI EAFE Index

To represent the price of non-US developed equity markets, we have chosen the MSCI EAFE index. Thisindex has the longest published history of price for non-US developed equities. The price=P of the P/Eratio is the current price of the market index (the average daily price of the most recent full month for theMSCI EAFE index). The price level of this index is available starting in December 1969. Again, for thereasons described above, we elected to use the Shiller E-10 as our measure of earnings (E). Since12/1972, a monthly price earnings ratio is available from MSCI. Using this quoted ratio, we have backedout the implied trailing-twelve month earnings of the EAFE index for each month from 12/1972 to thepresent. These annualized earnings are then inflation adjusted using CPI-U to represent real earnings inUS dollar terms for each time period. The Shiller E-10 for the EAFE index (10 year average real earnings) iscalculated in the same manner as detailed above.

However, we do not believe that the pricing and earnings history of the EAFE markets are long enough tobe a reliable representation of pricing history for developed market equities outside of the US. Therefore,in constructing the Long-Term Average Historical P/E for developed ex-US equities for comparisonpurposes, we have elected to use the US equity market as a developed market proxy, from 1881 to 1982.This lowers the Long-Term Average Historical P/E considerably. We believe this methodology provides amore realistic historical comparison for a market with a relatively short history.


Appendix


Emerging Market Equity Markets:Metric: Ratio of Emerging Market P/E Ratio to Developed Market P/E Ratio

To represent the Emerging Markets P/E Ratio we have chosen the MSCI Emerging Market Free Index whichTo represent the Emerging Markets P/E Ratio, we have chosen the MSCI Emerging Market Free Index, whichhas P/E data back to January 1995 on Bloomberg. To represent the Developed Markets PE Ratio, we havechosen the MSCI World Index, which also has data back to January 1995 on Bloomberg. Although thereare issues with published, single time period P/E ratios, in which the denominator effect can cause largemovements, we feel that the information contained in such movements will alert investors to market activitythat they will want to interpret.

US Private Equity Markets:Metrics: S&P LCD Average EBITDA Multiples Paid in LBOs and US Quarterly Deal Volume

The Average Purchase Price to EBITDA multiples paid in LBOs is published quarterly by S&P in their LCD study.This is the total price paid (both equity and debt) over the trailing-twelve month EBITDA (earnings beforeinterest, taxes, depreciation and amortization) as calculated by S&P LCD. This is the relevant, high-levelpricing metric that private equity managers use in assessing deals. Data is published monthly.US quarterly deal volume for private equity is the total deal volume in $ billions (both equity and debt)reported in the quarter by Thomson Reuters Buyouts. This metric gives a measure of the level of activity inthe market. Data is published quarterly.

U.S Private Real Estate Markets:Metrics: US Cap Rates, Cap Rate Spreads, and Transactions as a % of Market Value

Real estate cap rates are a measure of the price paid in the market to acquire properties versus theirannualized income generation before financing costs (NOI=net operating income). The data, published byNCREIF, describes completed and leased properties (core) on an unleveraged basis. We chose to usecurrent value cap rates. These are capitalization rates from properties that were revalued during thequarter. This data relies on estimates of value and therefore tends to be lagging (estimated prices areslower to rise and slower to fall than transaction prices). The data is published quarterly.Spreads between the cap rate (described above) and the 10-year nominal Treasury yield, indicate a

f th t f ti t f th t f fi imeasure of the cost of properties versus a current measure of the cost of financing.Transactions as a % of Market Value Trailing-Four Quarters is a measure of property turnover activity in theNCREIF Universe. This quarterly metric is a measure of activity in the market.

Credit Markets US Fixed Income:Metric: Spreads

The absolute level of spreads over treasuries and spread trends (widening / narrowing) are good indicatorsof credit risk in the fixed income markets. Spreads incorporate estimates of future default, but can also be

i i i i i fi i ( idriven by technical dislocations in the fixed income markets. Abnormally narrow spreads (relative tohistorical levels) indicate higher levels of valuation risk, wide spreads indicate lower levels of valuation riskand / or elevated default fears. Investment grade bond spreads are represented by the Barclays CapitalUS Corporate Investment Grade Index Intermediate Component. The high yield corporate bond spreadsare represented by the Barclays Capital US Corporate High Yield Index.


Appendix


Measure of Equity Market Fear / UncertaintyMetric: VIX – Measure of implied option volatility for U.S. equity markets

The VIX is a key measure of near term volatility conveyed by implied volatility of S&P 500 index optionThe VIX is a key measure of near-term volatility conveyed by implied volatility of S&P 500 index optionprices. VIX increases with uncertainty and fear. Stocks and the VIX are negatively correlated. Volatilitytends to spike when equity markets fall.

Measure of Monetary PolicyMetric: Yield Curve Slope

We calculate the yield curve slope as the 10 year treasury yield minus the 1 year treasury yield. When theyield curve slope is zero or negative, this is a signal to pay attention. A negative yield curve slope signalslower rates in the future caused by a contraction in economic activity Recessions are typicallylower rates in the future, caused by a contraction in economic activity. Recessions are typicallypreceded by an inverted (negatively sloped) yield curve. A very steep yield curve (2 or greater)indicates a large difference between shorter-term interest rates (the 1 year rate) and longer-term rates(the 10 year rate). This can signal expansion in economic activity in the future, or merely higher futureinterest rates.

Measures of US Inflation ExpectationsMetrics: Breakeven Inflation and Inflation Adjusted Commodity Prices

Inflation is a very important indicator impacting all assets and financial instruments Breakeven inflation isInflation is a very important indicator impacting all assets and financial instruments. Breakeven inflation iscalculated as the 10 year nominal treasury yield minus the 10 year real yield on US TIPS (treasury inflationprotected securities). Abnormally low long-term inflation expectations are indicative of deflationary fears.A rapid rise in breakeven inflation indicates an acceleration in inflationary expectations as marketparticipants sell nominal treasuries and buy TIPs. If breakeven inflation continues to rise quarter overquarter, this is a signal of inflationary worries rising, which may cause Fed action and / or dollar decline.Commodity price movement (above the rate of inflation) is an indication of anticipated inflation causedby real global economic activity putting pressure on resource prices. We calculate this metric byadjusted in the Dow Jones UBS Commodity Index (formerly Dow Jones AIG Commodity Index) by US CPI-U.While rising commodity prices will not necessarily translate to higher US inflation, higher US inflation will likelyshow up in higher commodity prices particularly if world economic activity is robustshow up in higher commodity prices, particularly if world economic activity is robust.These two measures of anticipated inflation can, and often are, conflicting.

Measures of US Treasury Bond Interest Rate RiskMetrics: 10-Year Treasury Forward-Looking Real Yield and 10-Year Treasury Duration

The expected annualized real yield of the 10 year U.S. Treasury Bond is a measure of valuation risk for U.S.Treasuries. A low real yield means investors will accept a low rate of expected return for the certainly ofreceiving their nominal cash flows. PCA estimates the expected annualized real yield by subtracting anestimate of expected 10 year inflation (produced by the Survey of Professional Forecasters as collectedestimate of expected 10 year inflation (produced by the Survey of Professional Forecasters as collectedby the Federal Reserve Bank of Philadelphia), from the 10 year Treasury constant maturity interest rate.Duration for the 10-Year Treasury Bond is calculated based on the current yield and a price of 100. This is ameasure of expected percentage movements in the price of the bond based on small movements inpercentage yield. We make no attempt to account for convexity.

Definition of “extreme” metric readings

A metric reading is defined as “extreme” if the metric reading is in the top or bottom decile of its historicalreadings These “extreme” reading should cause the reader to pay attention These metrics have


readings. These extreme reading should cause the reader to pay attention. These metrics havereverted toward their mean values in the past.

PCA Market Sentiment IndicatorPCA Market Sentiment IndicatorExplanation, Construction and Q&A

By:

Pension Consulting Alliance LLCPension Consulting Alliance, LLC.

John Linder, CFA, CPANeil Rue, CFA

PCA has created the PCA Market Sentiment Indicator (PMSI) tocomplement our valuation-focused PCA Investment Market RiskMetrics. This measure of sentiment is meant to capture significantand persistent shifts in long-lived market trends of economic growthrisk, either towards a risk-seeking trend or a risk-aversion trend.

This paper explores:

What is the PCA Market Sentiment Indicator (PMSI)? How do I read the indicator graph? How is the PCA Market Sentiment Indicator (PMSI) constructed? What do changes in the indicator mean?

© 2012 Pension Consulting Alliance, LLC. Reproduction of all or any part of this report is permissible ifreproduction contains notice of Pension Consulting Alliance’s copyright as follows: “Copyright © 2012by Pension Consulting Alliance, LLC.” Information is considered to be reliable but not guaranteed.This report is not intended to be an offer, solicitation, or recommendation to purchase any security ora recommendation of the services supplied by any money management organization unlessotherwise noted.

PCA Market Sentiment IndicatorPCA has created a market sentiment indicator for monthly publication (the PMSI – see below) tocomplement PCA’s Investment Market Risk Metrics.

PCA’s Investment Market Risk Metrics, which rely significantly on standard market measures ofrelative valuation, often provide valid early signals of increasing long-term risk levels in the globalinvestment markets. However, as is the case with numerous valuation measures, the Risk Metricsmay convey such risk concerns long before a market corrections take place. The PMSI helps to

i i i i i iaddress this early-warning bias by measuring whether the markets are beginning to acknowledgekey Risk Metrics trends, and / or indicating non-valuation based concerns. Once the PMSIindicates that the market sentiment has shifted, it is our belief that investors should considersignificant action, particularly if confirmed by the Risk Metrics. Importantly, PCA believes the RiskMetrics and PMSI should always be used in conjunction with one another and never in isolation.The questions and answers below highlight and discuss the basic underpinnings of the PCA PMSI:

What is the PCA Market Sentiment Indicator (PMSI)?The PMSI is a measure meant to gauge the market’s sentiment regarding economic growth riskThe PMSI is a measure meant to gauge the market s sentiment regarding economic growth risk.Growth risk cuts across most financial assets, and is the largest risk exposure that most portfoliosbear. The PMSI takes into account the momentum (trend over time, positive or negative) of theeconomic growth risk exposure of publicly traded stocks and bonds, as a signal of the futuredirection of growth risk returns; either positive (risk seeking market sentiment), or negative (riskaverse market sentiment).

How do I read the PCA Market Sentiment Indicator (PMSI) graph?Simply put, the PMSI is a color coded indicator that signals the market’s sentiment regardingeconomic growth risk It is read left to right chronologically A green indicator on the PMSIeconomic growth risk. It is read left to right chronologically. A green indicator on the PMSIindicates that the market’s sentiment towards growth risk is positive. A gray indicator indicates thatthe market’s sentiment towards growth risk is neutral or inconclusive. A red indicator indicates thatthe market’s sentiment towards growth risk is negative. The black line on the graph is the level ofthe PMSI. The degree of the signal above or below the neutral reading is an indication the signal’scurrent strength.

Momentum as we are defining it is the use of the past behavior of a series as a predictor of itsfuture behavior.

PCA Market Sentiment Indicator (1995 ‐ Present)

Positive Positive

Negative

Neutral Neutral

Negative



PCA Market Sentiment Indicator

How is the PCA Market Sentiment Indicator (PMSI) Constructed?

The PMSI is constructed from two sub-elements representing investor sentiment in stocks andbonds:

1. Stock return momentum: Return momentum for the S&P 500 Equity Index (trailing 12-months)2. Bond yield spread momentum: Momentum of bond yield spreads (excess of the measured. o d y e d sp ead o e u : o e u o bo d y e d sp eads (e cess o e easu ed

bond yield over the identical duration U.S. Treasury bond yield) for corporate bonds (trailing12-months) for both investment grade bonds (75% weight) and high yield bonds (25% weight).The scale of this measure is adjusted to match that of the stock return momentum measure.

The black line reading on the graph is calculated as the average of the stock return momentummeasure and the bonds spread momentum measure. The color reading on the graph isdetermined as follows:

1 If b th t k t t d b d d t iti GREEN ( iti )1. If both stock return momentum and bond spread momentum are positive = GREEN (positive)2. If one of the momentum indicators is positive, and the other negative = GRAY (inconclusive)3. If both stock return momentum and bond spread momentum are negative = RED (negative)

What does the PCA Market Sentiment Indicator (PMSI) mean? Why might it be useful?

There is strong evidence that time series momentum is significant and persistent. In particular,across an extensive array of asset classes, the sign of the trailing 12-month return (positive or

ti ) i i di ti f f t t ( iti ti ) th t 12 th i d Thnegative) is indicative of future returns (positive or negative) over the next 12 month period. ThePMSI is constructed to measure this momentum in stocks and corporate bond spreads. A readingof green or red is agreement of both the equity and bond measures, indicating that it is likely thatthis trend (positive or negative) will continue over the next 12 months. When the measuresdisagree, the indicator turns gray. A gray reading does not necessarily mean a new trend isoccurring, as the indicator may move back to green, or into the red from there. The level of thereading (black line) and the number of months at the red or green reading, gives the useradditional information on which to form an opinion, and potentially take action.

I Momentum as we are defining it is the use of the past behavior of a series as a predictor of its future behavior.

ii “Time Series Momentum” Moskowitz, Ooi, Pedersen, August 2010http://pages.stern.nyu.edu/~lpederse/papers/TimeSeriesMomentum.pdf


M E M O R A N D U M Date: July 29, 2015 To: Oakland Police and Fire Retirement System (OPFRS) From: Pension Consulting Alliance, Inc. (PCA) CC: David Sancewich – PCA Sean Copus – PCA Teir Jenkins – OPFRS Katano Kasaine - PCA RE: OPFRS Asset allocation Revision – Covered Calls Recommendation PCA recommends that PFRS change its existing asset allocation by moving 5% of the target allocation from U.S. equity to the covered call strategy. If this recommendation is approved, PCA further recommends moving the assets over the next two-three months. PCA would work with Staff to manage the transition as part of the regular portfolio rebalancing. Discussion At the June 24th OPFRS board meeting, PCA presented the board with an updated expected 2015 risk and return. As a result of this analysis PCA, presented a slight change to the current allocation of OPFRS that includes moving 5% of the current U.S. Equity portfolio into covered calls.

OPFRS Current Investment Class Current Target*

New Target*

Cash 0% 0% Fixed Income 20% 20%

Real Estate 0% 0% U.S. Equity 48% 43%

Private Equity 0% 0% Real Return 10% 10%

International Equity 12% 12% Covered Calls 10% 15%

*Reflects Long-term Target Allocation

Expected 10-Year Mean-Variance Outcomes

Current

New Expected Portfolio Arith. Annual Return 7.1% 7.0%

Expected Portfolio Annual Risk 12.7% 12.3% Expected Portfolio Compound Return 6.3% 6.3%

2

DISCLOSURES: This document is provided for informational purposes only. It does not constitute an offer of securities of any of the issuers that may be described herein. Information contained herein may have been provided by third parties, including investment firms providing information on returns and assets under management, and may not have been independently verified. The past performance information contained in this report is not necessarily indicative of future results and there is no assurance that the investment in question will achieve comparable results or that the Firm will be able to implement its investment strategy or achieve its investment objectives. The actual realized value of currently unrealized investments (if any) will depend on a variety of factors, including future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which any current unrealized valuations are based. Neither PCA nor PCA’s officers, employees or agents, make any representation or warranty, express or implied, in relation to the accuracy or completeness of the information contained in this document or any oral information provided in connection herewith, or any data subsequently generated herefrom, and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. PCA and PCA’s officers, employees and agents expressly disclaim any and all liability that may be based on this document and any errors therein or omissions therefrom. Neither PCA nor any of PCA’s officers, employees or agents, make any representation of warranty, express or implied, that any transaction has been or may be effected on the terms or in the manner stated in this document, or as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views or terms contained herein are preliminary only, and are based on financial, economic, market and other conditions prevailing as of the date of this document and are therefore subject to change. The information contained in this report may include forward-looking statements. Forward-looking statements include a number of risks, uncertainties and other factors beyond the control of the Firm, which may result in material differences in actual results, performance or other expectations. The opinions, estimates and analyses reflect PCA’s current judgment, which may change in the future. Any tables, graphs or charts relating to past performance included in this report are intended only to illustrate investment performance for the historical periods shown. Such tables, graphs and charts are not intended to predict future performance and should not be used as the basis for an investment decision. All trademarks or product names mentioned herein are the property of their respective owners. Indices are unmanaged and one cannot invest directly in an index. The index data provided is on an “as is” basis. In no event shall the index providers or its affiliates have any liability of any kind in connection with the index data or the portfolio described herein. Copying or redistributing the index data is strictly prohibited. The Russell indices are either registered trademarks or tradenames of Frank Russell Company in the U.S. and/or other countries. The MSCI indices are trademarks and service marks of MSCI or its subsidiaries. Standard and Poor’s (S&P) is a division of The McGraw-Hill Companies, Inc. S&P indices, including the S&P 500, are a registered trademark of The McGraw-Hill Companies, Inc. CBOE, not S&P, calculates and disseminates the BXM Index. The CBOE has a business relationship with Standard & Poor's on the BXM. CBOE and Chicago Board Options Exchange are registered trademarks of the CBOE, and SPX, and CBOE S&P 500 BuyWrite Index BXM are servicemarks of the CBOE. The methodology of the CBOE S&P 500 BuyWrite Index is owned by CBOE and may be covered by one or more patents or pending patent applications. The Barclays Capital indices (formerly known as the Lehman indices) are trademarks of Barclays Capital, Inc. The Citigroup indices are trademarks of Citicorp or its affiliates. The Merrill Lynch indices are trademarks of Merrill Lynch & Co. or its affiliates. FTSE is a trademark of the London Stock Exchange Group companies and is used by FTSE under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. No further distribution of FTSE data is permitted with FTSE’s express written consent.

of 3


A. CLOSED SESSION

B. Report of PFRS Board Action from Closed Session (if any).

C. Subject: June 24, 2015 PFRS Board Meeting Minutes

From: Staff of the PFRS Board

Recommendation: APPROVE June 24, 2015 Board meeting minutes.

D. JULY 29, 2015 – AUDIT & BUDGET MATTERS COMMITTEE AGENDA

D1. Subject: Overview and Scope of Services report of FY 2015 Financial Audit

From: Williams – Adley & Co, PFRS financial auditor

Recommendation: APPROVE report from PFRS financial auditor regarding Overview and Scope of Services of the financial audit of PFRS fund for Fiscal Year ending June 30, 2015.

D2. Subject: Administrative Expenses Report


Recommendation: ACCEPT an informational report regarding PFRS Administrative Expenses from July 1, 2014 through May 31, 2015.

E. JULY 29, 2015 – INVESTMENT & FINANCIAL MATTERS COMMITTEE AGENDA

E1. Subject: Investment Manager Performance Report – Fisher Investments

From: Fisher Investments

Recommendation: ACCEPT an informational report regarding fund performance for PFRS “MSCI ACWI ex US assets” invested with Fisher Investments, an international equity Investment Manager.













SPECIAL MEETING of the BOARD OF ADMINISTRATION of the OAKLAND POLICE AND FIRE RETIREMENT SYSTEM (“PFRS”)

AGENDA

OAKLAND POLICE AND FIRE RETIREMENT SYSTEM SPECIAL BOARD MEETING JULY 29, 2015


Page 2 of 3

E2. Subject: Investment Manager Overview – Fisher Investments


Recommendation: ACCEPT an informational review of Organization and Performance ofFisher Investments, an international equity Investment Manager.

E3. Subject: Preliminary Quarterly investment fund performance report for the quarter ending June 30, 2015


Recommendation: ACCEPT an informational report regarding the preliminary quarterly investment fund performance report for the quarter ending June 30, 2015.

E4. Subject: Investment Market Overview

From: Pension Consulting Alliance (PCA)

Recommendation: ACCEPT an Informational Report regarding overview of the global investment market through July 2015.

E5. Subject: Reallocation of PFRS assets from the Private Equity Asset Class to Covered Calls Asset Class


Recommendation: APPROVE PCA recommendation to reallocate 5% PFRS Investments from the Private Equity Asset class to the Covered Calls Asset Class.

F. Subject: Resolution No. 6856 affirming the board’s motion of September 24, 2014 wherein it approved and adopted the Oakland Police and Fire Retirement System Rules and Regulations


Recommendation: APPROVE Resolution No. 6856 affirming the board’s motion of September 24, 2014 wherein it approved and adopted the Oakland Police and Fire Retirement System Rules and Regulations.

G. Subject: Member Resolutions No. 6857, 6858, 6859, 6860, and 6861


Recommendation: APPROVE Resolutions No. 6857, 6858, 6859, 6860, and, 6861

Resolution No. 6857

Resolution Approving Death Benefit Allowance Payment to (1) Estate of Walter Price (P), and (2) Barbara House, ex-spouse of Lance H. House (P)

Resolution No. 6858

Resolution Approving Death Benefit Allowance Payments to Joseph A. and David S. Severino, sons of Alfred J. Severino (P)

Resolution No. 6859

Resolution Approving Service Retirement Allowance Payments to Geraldine A. LeStrange, spouse of Donald L. LeStrange (P)

Resolution No. 6860

Resolution Approving Disability Retirement Allowance Payments to (1) Patricia Cordova, Spouse of Nabor J. Cordova (P), and (2) Barbette L. Graves, spouse of Morgan P. Graves (F)

Resolution No. 6861

Resolution Approving Disability Retirement Allowance Payment to Christine A. Janowski, spouse of John L. Janowski (F)

OAKLAND POLICE AND FIRE RETIREMENT SYSTEM SPECIAL BOARD MEETING JULY 29, 2015


Page 3 of 3

H. New Business – None

I. Open Forum

J. Future Scheduling Schedule for potential action at the August 26, 2015 PFRS Board Meeting:

1. Resolution to rescind PFRS Board Resolution No. 6819:

“Resolution determining that the system will recover all shift differential overpayments made to PFRS retirees and beneficiaries for the period March 30, 2014 and after, and deferring the recovery until the PFRS board makes an additional decision about the method and timing of recovering said overpayments” and No. 6825 “Resolution directing the recovery of 100% of holiday overpayments made to PFRS retirees and beneficiaries since July 1, 2006, in the approximate amount of $3,258,188, and (2) deferring said recovery until further PFRS board action”.

2. Resolution to rescind PFRS Board Resolution No. 6824: “Resolution (1) to rescind the board motion of February 24, 2010 (which directed payment of PFRS police retirement benefits based on 12 holidays per year) and (2) to direct that calculation of police retirement benefits since July 1, 2009 be made consistent with the reduced holidays granted to active police officers in the July 1, 2006 memorandum of understanding”.

3. Resolution establishing the method and timing for recovery of overpayments arising out of the PFRS Board Resolutions No. 6818, 6819, 6824 and 6825.

4. Resolution establishing the Hardship Consideration Criteria for handling overpayments to PFRS members and beneficiaries.

PFRS Board Meeting Minutes June 24, 2015

Page 1 of 4

D R A F T

D R A F T

A SPECIAL BOARD MEETING of the Oakland Police and Fire Retirement System (“PFRS”) was held June 24, 2015 in Hearing Room 1, One Frank Ogawa Plaza, Oakland, California

Board Members Present: • Walter L. Johnson, President • Jaime T. Godfrey, Vice President • John C. Speakman, Member • Steven Wilkinson, Member • Osborn Solitei, Member • James F. Cooper, Member • Ronald Oznowicz, Member

Additional Attendees: • Pelayo Llamas, Deputy City Attorney / PFRS Legal Counsel • Katano Kasaine, Plan Administrator • David Low & Teir Jenkins, Staff Members • David Sancewich & Sean Copus, Pension Consulting Alliance (PCA)

The meeting was called to order at 11:45 am.

A. Closed Session – Mr. Ron Gunar of the Retired Oakland Police Officers Association (ROPOA) encouraged the PFRS board to work with the ROPOA toward an equitable settlement of the current lawsuits with the Police retirees. He also spoke about the recent court proceedings on the matter. After Mr. Gunar finished speaking, President Johnson convened the Closed Session PFRS Board meeting at 11:54 am.

B. Report of any PFRS Board Action from Closed Session – Open Session of the PFRS board meeting resumed at 1:16 pm. President Johnson stated there was no reportable Board action from Closed Session.

Member Wilkinson was absent and excused from the remainder of the Board meeting at 1:16 p.m.

C. Approval of April 29, 2015 Board meeting minutes – President Johnson said the approval of the April 29, 2015 Board meeting minutes was tabled at the last Board meeting to allow board and staff to review PFRS rules and confirm the accuracy of the April 29, 2015 Board meeting minutes. He confirmed the accuracy of the PFRS board meeting minutes. Member Godfrey made a motion to approve the April 29, 2015 Board meeting minutes, second by member Cooper. Motion passed.

[JOHNSON – Y / GODFREY – Y / COOPER – Y OZNOWICZ – Y / SPEAKMAN – Y / SOLITEI – ABSENT / WILKINSON – ABSENT ]

( AYES: 5 / NOES: 0 / ABSTAIN: 0 )

D. Approval of May 27, 2015 Board meeting minutes – Member Cooper made a motion to approve the May 27, 2015 Board meeting minutes, second by member Speakman. Motion passed. Member Godfrey abstained due to his absence from the April 30, 2015 meeting.

[JOHNSON – Y / GODFREY – ABSTAIN / COOPER – Y OZNOWICZ – Y / SPEAKMAN – Y / SOLITEI – ABSENT / WILKINSON – ABSENT ]


E. PFRS AUDIT COMMITTEE MEETING – JUNE 24, 2015

E1. Administrative Expenses Report through April 30, 2015 – Mr. Jenkins presented the details of the administrative expenses report from July 1, 2014 through April 30, 2015. Member Cooper made a motion to accept the Administrative Expenses Report from July 1, 2014 through April 30, 2015, second by member Godfrey. Motion passed. Member Godfrey abstained due to his absence from the April 30, 2015 meeting.

[JOHNSON – Y / GODFREY – ABSTAIN / COOPER – Y OZNOWICZ – Y / SPEAKMAN – Y / SOLITEI – ABSENT / WILKINSON – ABSENT ]


Page 2 of 4

D R A F T

D R A F T


F. PFRS INVESTMENT COMMITTEE MEETING – JUNE 24, 2015

F1. Quarterly Investment Performance Report through 3/31/2015 – It was reported that the performance report was previous reported at the May 27, 2015 meeting and there was no quorum of the committee present to make a motion to approve the performance report. Member Cooper made a motion to approve the quarterly investment performance report through May 27, 2015 from PCA, second by member Speakman. Motion passed.

[JOHNSON – Y / GODFREY – Y / COOPER – Y OZNOWICZ – Y / SPEAKMAN – Y / SOLITEI – Y / WILKINSON – ABSENT]


F2. Investment Manager Performance Review – State Street Global Advisors – Member Godfrey reported that the international investment fund manager State Street Global Advisors(SSgA) presented a performance overview of the PFRS funds invested with the MSCI EAFE international equity asset accounts. Member Godfrey made a motion to accept the informational report by SSgA, second by member Cooper. Motion passed.



F3. Investment Manager Performance Overview by PCA of SSgA – Member Godfrey reported that PCA presented an overview of the performance and management of PFRS funds by SSgA and of the management status of their company. Member Godfrey made a motion accept the investment manager performance overview by PCA, second by member Oznowicz. Motion passed.



F4. $15 Million 3rd Quarter 2015 Member Benefits Drawdown – Member Godfrey made a motion to approve $15 Million 3rd Quarter 2015 member benefits drawdown, second by Member Oznowicz. Motion passed.



F5. Resolution No. 6855 – Transition from PCA Inc. to PCA LLC – Mr. Sancewich reported the work with PFRS staff and PCA to finalize the transition of PCA Inc. into PCA LLC. Member Godfrey made a motion to approve resolution No. 6855 to approve the amendment to the service contract with PCA LLC, second by member Oznowicz. Motion passed.



F6. Investment Market Overview – Mr. Sancewich reported the global market factors presently affecting the PFRS investment fund. Following this report, Member Speakman made a motion accept the Investment Market overview report, second by Member Solitei. Motion passed.



F7. 2015 Asset Allocation Review – Mr. Sancewich reported PCA’s analysis of the current asset allocation of the PFRS fund and provided a recommendation that the PFRS board consider


Page 3 of 4

D R A F T

D R A F T

moving the 5% asset allocation in private equity into the PFRS covered calls asset class. After some committee discussion, Member Speakman made a motion to accept the asset allocation report, second by member Solitei. Motion passed.



F8. Resolution No. 6854 – PFRS Investment Policy Amendment regarding Covered Calls – Mr. Sancewich reported the PCA recommendation regarding the Covered Calls asset class manager’s report on the allocation of funds in the covered calls asset class. Member Godfrey made a motion to approve resolution No. 6854 amending the investment policy guidelines for the PFRS covered calls asset manager (Parametric Portfolio Advisors), with typographical corrections fixing the error from 205% to 25%, second by member Oznowicz. Motion passed.



F9. Review of Lawsuit involving PFRS investment earnings from 2009 with Reams Asset Management – Mr. Sancewich and the PFRS Staff reported the information regarding a lawsuit which involved investment returns associated with assets managed by Reams Asset Management in 2009. Member Godfrey made a motion to accept the informational report from staff, second by member Oznowicz. Motion passed.



G. Member Resolutions – Member Speakman made a motion to approve resolution No. 6851 approving the death benefit allowance payment to the estate of Gregory M. Smith (F), second by member Cooper. Motion passed.



Member Speakman made a motion to approve resolution No. 6852 approving the death benefit allowance payment to (1) William McHugh, son of William D. McHugh(F), and (2) Catherine Brown, Spouse of Maynard C. Brown (F), and (3) Lynn A. King, daughter of Walter J. Fredrickson (F), second by member Cooper. Motion passed.



Member Cooper made a motion to approve resolution No. 6853 approving the death benefit allowance payment to Patrick Connolly, son of Daniel Connolly (P), second by member Oznowicz. Motion passed.



H. New Business – No New Business.

I. Open Forum – No Report.


Page 4 of 4

D R A F T

D R A F T

J. Future Scheduling – PFRS Staff reported that the report about PFRS’ alleged overpayment/underpayment of PFRS Police Retiree benefits scheduled for presentation at the July 29, 2015 meeting will be postponed until the August 26, 2015 meeting due to the expected absence of Members Cooper and Oznowicz. The next PFRS Board meeting was scheduled for Wednesday, July 29, 2015.

The meeting adjourned at 1:36 pm.

KATANO KASAINE, BOARD SECRETARY DATE

CITY OF OAKLAND

TO: Oakland Police and Fire Retirement System Board

SUBJECT: Resolution No. 6856 affirming the board's motion of September 24, 2014 wherein it approved and adopted the Oakland Police and Fire Retirement System Rules and regulations

BACKGROUND

AGENDA REPORT

FROM: Pelayo A. Llamas, Jr. Legal Counsel

DATE: July 20, 2015

On September 24, 2014, the Oakland Police and Fire Retirement System Board ("PFRS Board"), by unanimous motion, approved and adopted comprehensive updated and revised Rules and Regulations. This was the culmination of a three-year effort reaching back to July 2011. In July 2011, the PFRS Board directed its Outside Legal Counsel to make recommendations on updating and developing the Rules and Regulations of the PFRS Board. Outside Counsel conducted public discussion sessions and worked with staff and the PFRS Audit Committee over the following year to update the Rules and Regulations, presenting progress reports to the PFRS Board.

PFRS Legal Counsel I City Attorney Tracy Chriss later assumed the work on this project and made a progress report to the board at the November 14, 2012 Board meeting. Attorney Pelayo Llamas assumed the role of PFRS Legal Counsel I City Attorney in April 24, 2013 and continued work on the revision of the Rules and Regulations.

Beginning at the February 26, 2014 Board meeting, Attorney Llamas and the Audit Committee worked to complete the update of the PFRS Board Rules and Regulations. After a number of additional public meetings and consideration of extensive written and oral comments and suggestions made by the Retired Oakland Police Officers' Association, the PFRS Board unanimously passed a motion adopting the updated PFRS Board Rules and Regulations at the September 24, 2014 Board meeting. Member Oznowicz moved the item, seconded by Member Cooper, and the vote was 7 Aye/ 0 ~fay.

PFRS Board Meeting July 29, 2015

OAKLAND POLICE & FIRE RETIREMENT SYSTEM AGENDA REPORT-Affirmation of the board's motion of September 24, 2014 approving and adopting the Oakland PFRS Rules and Regulations July 20, 2015 PAGE2

CONFORMANCE WITH CHARTER

Charter Section 2601 ( e) empowers the PFRS Board to enact rules and regulations. Charter section 2601(b) states that the PFRS Board exercises its powers by resolution or order. To strictly comply with the terms of the Charter, the Rules and Regulations should be adopted by resolution.

CONCLUSION

Legal Counsel of the PFRS board recommends the adoption of proposed PFRS Resolution No. 6856 which affirms the board's motion of September 24, 2014 wherein it approved and adopted the Oakland Police and Fire Retirement System rules and regulations.

yo . LI Legal o el to the Oakland Police and Fire Retire ent System Board I Deputy City Attorney

For questions please contact Teir Jenkins, Investment Officer, at 510-238-6481.

Attachments (if any): Resolution No. 6856 - Resolution cifjirming the board's motion of September 24, 2014 wherein it approved and adopted the Oakland Police and Fire Retirement System rules and regulations

PFRS Board Meeting July 29, 2015

OAKLAND POLICE AND FIRE RETIREMENT BOARD CITY OF OAKLAND, CALIFORNIA

PASSED BY THE FOLLOWING VOTE:

AYES: JOHNSON, GODFREY, SPEAKMAN, COOPER, OZNOWICZ, WILKINSON, SOLITEI

NOES:

ABSENT:

ATTEST: PRESIDENT

ATTEST: SECRETARY

RESOLUTION NO. 6856

ON MOTION OF MEMBER SECONDED BY MEMBER

RESOLUTION AFFIRMING THE BOARD’S MOTION OF SEPTEMBER 24, 2014 WHEREIN IT APPROVED AND ADOPTED THE OAKLAND POLICE AND FIRE RETIREMENT SYSTEM RULES AND REGULATIONS

WHEREAS, in the period of July 2011 through September 2014, the PFRS Board conducted public meetings to consider revising and amending its Rules and Regulations as authorized by Charter section 2601(e), with the goal of creating an all-encompassing set of rules, regulations, and procedures; and

WHEREAS, the PFRS Board invited any interested persons to provide oral and written input, comments, and suggestions to the board about certain terms of the Rules and Regulations; and

WHEREAS, the Retired Police Officers Association (ROPOA) provided extensive oral and written input, comments, and suggestions to the board about certain terms of the Rules and Regulations; and

WHEREAS, PFRS staff provided written responses, comments, and revisions in light of the written and verbal commentary and suggestions received during the course of the multiple public meetings about the revision of the Rules and Regulations; and

WHEREAS, on September 24, 2014, the PFRS Board passed a motion (motion by Member Speakman, Second by Member Cooper) by a vote of 7 Aye:0 Nay: 0 Abstain, to approve and adopt said rules and regulations; and

WHEREAS, Charter section 2601(b) states that the Board exercises its powers under Article XXVI by order or resolution; and

WHEREAS, passage of this resolution will eliminate any ambiguity that the Rules and Regulations unanimous motion of the Board are in full force, now therefore be it

RESOLVED: That the comprehensive Rules and Regulations approved and adopted by unanimous motion of the PFRS Board on September 24, 2014 is hereby affirmed and made part of this Resolution. IN BOARD MEETING, CITY HALL, OAKLAND, CA JULY 29, 2015



AYES: JOHNSON, GODFREY, SPEAKMAN, BERNARD, OZNOWICZ, WILKINSON, SOLITEI

NOES:

ABSENT:

ATTEST: PRESIDENT

ATTEST: SECRETARY

RESOLUTION NO. 6857


RESOLUTION APPROVING DEATH BENEFIT ROLL NUMBER 8575 AND DIRECTING WARRANTS THEREUNDER IN THE TOTAL SUM OF $1,000.00.

WHEREAS, due proof having been received of the death of the person(s) named in Column (1) below, active or retired member(s) of the Police and Fire Department, under Article XIV, XV or XXVI of the Charter of the City of Oakland; and

WHEREAS, the beneficiary(ies) to whom the death benefit provided in Charter Section stated in Column (3) is payable, is the person(s) whose name(s) is/are stated in Column (4) opposite the respective name(s) of the deceased active or retired member; and

WHEREAS, the amount of said death benefit is stated in Column (6) opposite said respective name(s); now, therefore, be it

RESOLVED: That the Retirement Board approves, and it does hereby approve Death Benefit Roll Number 8575, a copy of which is attached hereto, providing for payment of such death benefit to the person(s) named in Column (4); and be it

FURTHER RESOLVED: That the Director of Finance, be and is hereby directed to draw and sign warrant(s) for the amount in Column (6) payable to the respective person(s) whose name(s) appear(s) in Column (4):

(1) (2) (3) (4) (5) (6)

Name of Deceased Member

Status of Member

Charter Section

Name of Beneficiary

Relationship of Beneficiary

Death

Benefit Amount

Walter E. Price (P)

Lance H. House(P)

Retired

Retired

2612

2612

Estate

Barbara J. Raupe-House Ex-Spouse

$1,000.00

$1,000.00

IN BOARD MEETING, CITY HALL, OAKLAND, CA JULY 29, 2015



AYES: JOHNSON, GODFREY, SPEAKMAN, BERNARD, OZNOWICZ, WILKINSON, SOLITEI

NOES:

ABSENT:

ATTEST: PRESIDENT

ATTEST: SECRETARY

RESOLUTION NO. 6858


RESOLUTION APPROVING DEATH BENEFIT ROLL NUMBER 8580 AND DIRECTING WARRANTS THEREUNDER IN THE TOTAL SUM OF $1,000.00.

WHEREAS, due proof having been received of the death of the person(s) named in Column (1) below, active or retired member(s) of the Police and Fire Department, under Article XIV, XV or XXVI of the Charter of the City of Oakland; and

WHEREAS, the beneficiary(ies) to whom the death benefit provided in Charter Section stated in Column (3) is payable, is the person(s) whose name(s) is/are stated in Column (4) opposite the respective name(s) of the deceased active or retired member; and

WHEREAS, the amount of said death benefit is stated in Column (6) opposite said respective name(s); now, therefore, be it

RESOLVED: That the Retirement Board approves, and it does hereby approve Death Benefit Roll Number 8580, a copy of which is attached hereto, providing for payment of such death benefit to the person(s) named in Column (4); and be it

FURTHER RESOLVED: That the Director of Finance, be and is hereby directed to draw and sign warrant(s) for the amount in Column (6) payable to the respective person(s) whose name(s) appear(s) in Column (4):

(1) (2) (3) (4) (5) (6)


Status of Member

Charter Section

Name of Beneficiary

Relationship of Beneficiary

Death

Benefit Amount

Alfred J. Severino (P)

Retired

2612

Joseph A. Severino

David S. Severino

Son

Son

$500.00

$500.00





NOES:

ABSTAIN:

ABSENT:

ATTEST: PRESIDENT

ATTEST: SECRETARY

RESOLUTION NO. 6859

ON MOTION OF MEMBER SECONDED BY MEMBER RESOLUTION FIXING THE MONTHLY ALLOWANCE OF THE SURVIVING SPOUSE(S) OF THE RETIRED MEMBER(S) OF THE POLICE AND FIRE RETIREMENT SYSTEM.

WHEREAS, the retired member of the Police and Fire Retirement System, whose name appears below, died on the date shown; and

WHEREAS, the surviving spouse, whose name appears below, does not claim such death resulted from injury in or illness caused by the performance of duty; and

WHEREAS, there is now presented to this Board, the amount in Column (6), as shown on Service Retirement Allowance Roll No. 8581 and as calculated by the Actuary in accordance with Article XXVI of the Charter of the City of Oakland; now, therefore, be it

RESOLVED: That the Police and Fire Retirement Board fixes, and it does hereby fix, the amount in Column (6), as the monthly allowance to which said surviving spouse is entitled, effective on the date shown in Column (4):

(1) (2) (3) (4) (5) (6)


Date of Death

Name of Surviving Spouse

Effective Date of Allowance

% of Compensation

Attached to Avg. Rank Held

Monthly Allowance

Donald L. LeStrange (P) 05/12/2015 Geraldine A. 05/13/2015 27.617% $3,067.74





NOES:

ABSENT:

ATTEST: PRESIDENT

ATTEST: SECRETARY

RESOLUTION NO. 6860




WHEREAS, there is now presented to this Board, the amount in Column (6), as shown on Disability Retirement Allowance Roll No. 8582 and as calculated by the Actuary in accordance with Article XXVI of the Charter of the City of Oakland; now, therefore, be it


(1) (2) (3) (4) (5) (6)


Date of Death



% of Compensation


Monthly Allowance

Nabor J. Cordova (P)

Morgan P. Graves (F)

05/26/2015

05/26/2015

Patricia

Barbette L.

05/27/2015

05/27/2015

33.3333%

41.1111%

$3207.57

$3798.83





NOES:

ABSENT:

ATTEST: PRESIDENT

ATTEST: SECRETARY

RESOLUTION NO. 6861




WHEREAS, there is now presented to this Board, the amount in Column (6), as shown on Disability Retirement Allowance Roll No. 8587 and as calculated by the Actuary in accordance with Article XXVI of the Charter of the City of Oakland; now, therefore, be it


(1) (2) (3) (4) (5) (6)


Date of Death



% of Compensation


Monthly Allowance

John L. Janowski (F) 06/12/2015 Christine A. 06/13/2015 39.718% $3670.14



THE PFRS BOARD WILL MEET IN CLOSED SESSION

DURING ITS SCHEDULED BOARD MEETING Please see the meeting agenda for open session items. The board will convene in open session prior to the closed session. Speakers may address the items of business on the closed session agenda prior to closed session. All speakers must fill out a speaker’s card and submit it to the Secretary to the Board. The Board will reconvene in open session following the closed session to report any final decisions that the board makes in closed session. Pursuant to California Government Code Section 54956.9(d)(1): 1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION

Retired Oakland Police Officers Association v. Oakland Police and Fire Retirement System, et al., Alameda County Superior Court Action No. RG14753080

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION

Retired Oakland Police Officers Association v. Oakland Police and Fire Retirement System, et al., Alameda County Superior Court Action No. RG15758831

3. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION

Case Name not disclosed per Government Code section 544956.9(d)(4).











Wednesday, July 29, 2015 –during regular meeting starting at 11:30 am One Frank H. Ogawa Plaza, Hearing Room 3


CLOSED SESSION of the BOARD OF ADMINISTRATION of the OAKLAND POLICE AND FIRE RETIREMENT SYSTEM (“PFRS”)

AGENDA

Retirement Systems Steven Wilkinson 150 Frank H. Ogawa ...Recommendation: APPROVE June, 2015 Audit...

Documents

Transcript of Retirement Systems Steven Wilkinson 150 Frank H. Ogawa ...Recommendation: APPROVE June, 2015 Audit...